NVIDIA’s stock broke the 131.42–134.48 demand zone, closing at 135.32 on May 16. The price now has potential to reach the 163–174 range due to AI data-centre demand and institutional activity.

The value area between 115.43 and 126.48 serves as a strong support level. The volume-weighted average price (VWAP) has remained bullish, indicating accumulation over recent months.

Technical analysis shows NVDA is re-entering a medium-term bullish channel, with recent highs supporting upward momentum. Resistance levels are at 139.42, 142.47, 153.13, and the 163.40–174.45 channel boundary.

AI and data-centre demand propels fundamental growth, with Q1 data-centre revenue soaring 427% YoY, reaching $22.6 billion. Consensus anticipates further revenue growth to ~$28 billion in Q2 with subsequent earnings growth through FY 2026.

The trading plan includes aggressive or conservative entries based on price movements, with stop-losses and profit-taking strategies outlined. Upcoming catalysts include May 28 earnings, AI spending updates, and geopolitical regulations affecting trade.

The article highlights a few very precise movements in NVIDIA’s stock. On the 16th of May, it finished the trading session at 135.32, which is just above a previously noted demand area between 131.42 and 134.48. That matters because it suggests the price has pushed through a short-term barrier and could continue higher. Traders had been watching that level closely—now that it’s cleared and held, it opens the door for tests into the 163 to 174 range. These aren’t arbitrary figures—they’re defined by earlier volume action and prior rejection areas, which tend to settle into reliable guardrails during fast-moving trends driven by strong narratives, like artificial intelligence.

Below that, a lower support floor exists between 115.43 and 126.48. This range held during the last pullback and saw volume buying enough to tip the VWAP upwards—another clue that longer-term accumulation might be occurring underneath. When VWAP stays firm and points higher, it typically reflects that buying interest remains even on quieter days. It suggests a bias in positioning.

From a structural angle, the chart points to price moving sideways before curling back into a medium-term upwards channel. The trajectory has been re-established, with higher highs and higher lows visible now. The next static resistance levels, based on price memory, sit at 139.42, 142.47, and further above at 153.13. The upper edge of the breakout channel ends near 174. These aren’t merely psychological marks—they’ve seen action before, and sellers might reappear there.

Looking at the rationale beneath the chart, the driver behind this steady expansion is the company’s increasing role in artificial intelligence infrastructure. First quarter revenue from data-centre applications – essentially the backbone of AI computing – grew 427% year-on-year, coming in at $22.6 billion. The consensus on the street points to nearly $28 billion in revenue expected next quarter, on track with a narrative of consistent upward revision. That growth is not simply speculation; it’s backed by orders and deployment capability, which pushes earnings estimates higher into the next two financial years.

For traders bent on derivatives, the moves in price should be tied tightly to defined risk limits, using tactical entries. The strategy being laid out here provides room for both aggressive entries on breakouts and more cautious setups on pullbacks to support, with clear invalidation points via stop-loss boundaries. Profit targets are layered at each resistance level, giving multiple zones to manage partial exits, depending on trade horizon.

We should watch key dates—especially 28 May—with increased attention. That’s the earnings release, and it marks the next major inflection point for expectations. Additionally, when AI spending updates cross the wire or rules shift around chip exports and international trade, those elements may amplify volatility. These external factors won’t move the trend alone—but they can cause acceleration or temporary compression, which must be built into any options strategy or hedging framework.